Critics of the plan have alleged gross misconduct by contracted caregivers, who they argue are paid less in wages and benefits than state-paid caregivers and therefore less apt to provide adequate care.

State officials have called those claims dubious, and point to more than $4 million in expected savings by contracting the jobs out to Grand Rapids-based J2S Group Healthforce.

Representatives of AFSCME Local 261, which represents the unionized caregivers, were not immediately available for comment.

The Civil Service Commission heard arguments for and against privatization at its meeting in mid-March. In its ruling, the panel said state officials well exceeded the required cost-savings threshold of 5 percent for privatizing the home.

In a 2-2 decision, the commission found estimates of more than $4 million in savings from privatizing the home is more than 40 percent in cost savings.

The split vote on whether to allow Detroit-based AFSCME Council 25, which brought the complaint, to continue appealing the decision meant privatization would stand.

Another appeal was denied, with three commissioners voting against and one in favor, the rulings show.